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Florida 7, Cramer 7, Icahn 6, Ackman 6, Herbalife 4, U.s. 4, Carl Icahn 4, Dr. Phillip Frost 3, Blake 3, Jim Cramer 3, Dan 3, New York 2, Lymphoma 2, Devon 2, Adalimumab 2, Us 2, Pfizer 2, Nokia 2, Hepatitis B 2, United States 2,
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  CNBC    Mad Money    News/Business.  (2013) New.  

    January 28, 2013
    6:00 - 7:00pm EST  

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an entirely new pursuit. time for the final trade. beekers? >> one of the largestette noll producers has a shortage of corn. buy the grains. >> karen? >> i like pacific drilling, pacd. >> grasso? >> verizon. i think 2013 is going to be very interesting for them. >> tim?
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>> talk about overbought and oversold. buy the eem against is spy. this spread against you for nine straight days, go the other way with it. >> all right, i'm melissa lee. thank you for watching. see you tomorrow, 9:00 a.m. -- that is so disturbing. 9:00 a.m. for "squawk on the street," 5:00 here for more "fast money." don't go anywhere. "mad money" with jim cramer starts right now. i'm jim cramer and welcome to my world. you need to get in the game. going out of business and he's nuts, they're nuts, they know nothing! i always like to say there's a bull market somewhere, and i -- "mad money," you can't afford to miss it. hey, i'm cramer, welcome to "mad money," welcome to cramerica, other people want to make friends, well, i'm just trying to make you a little money. my job is not just to entertain, but i'm trying to educate and teach you. so call me at 1-800-743-cnbc. do we need to be worried when we
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see the market at five-year highs? is that scary? do we have to be concerned when we pick up the front page of the usa today and the headline reads "stocks reach for the records." analysts recent gains are rational exuberance. especially on a day where the averages kind of stalled out. dow edging down 14 points, s&p dipping .18%. thank you apple for actually going up. when we see these articles, how about the articles about our retail investors are back and the bears are in hibernation, like this one. this one about surging stocks in the "wall street journal." when the bears are on their heels. first, let me say, here's the way i play it, we should always be skeptical, we should always be a little worried. that's okay. especially after a move like this. where we go to five-year highs and have the best january in years. we'd be fools not to consider what could go wrong. remember last earnings period?
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we came into this very week with mostly better than expected numbers as we have this time. but it was pretty much all downhill from there. hey, look after vm wear reported tonight, it was very disappointed, a lot of the cloud stocks down, this time could be the same. second, we have a fed meeting this week. we have to believe that the fed sees the same strength in the economy that you and i do, starting to fret about all that easy money. interest rates are going higher, ten-year treasury trading to 2% today. we don't know if that's going to defeat the fed's efforts to keep rates low. or is it just fine? because at a certain point, the economy does catch fire. and then we don't need the fed support. think about this, i just got a 2.75%, 2.75 mortgage last friday. how long can that last? i think i caught the bottom. finally, while the earnings have been good, we keep hearing lots of chatter about how the top line is not so at the top line, the top line, the top line. it's starting to annoy me.
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all i can say is i've ignored this kind of ill-logic and bogus thinking for ages. i'm not going to be trapped by it. instead, i'm thinking about when that top line does come back, when the sales do roar, after all the shares that have bought back, it's going to produce profits like you wouldn't believe because of how lean our companies have become. comen o, they fired a lot of people during the bad times here. all that said, i'm not the least bit concerned that the retail investor might be coming back to this market. it's been years since he's been in. we've seen money poured out of stocks and bonds. stocks into bond funds for ages. here's some numbers, $400 billion out of stocks into bonds last year versus $14 billion in this year? give me a break. we'll see tons of billions more flowing back from bond funds, and they could be dangerous here if interest rates spike. i'm not going to panic after one
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month of inflows. frankly that's ridiculous. that's something it's a sparring point that people talk about because that i had nothing else to talk about. we've had quite a run from the bottom. let's not forget that stocks have done nothing for ages despite massive buybacks. imagine all that money comes back. wow, after this move, stocks are still undervalued on every metric i use especially when it comes to the competition. i've got a different way to approach this, instead of focusing on the articles about the little guy's newfound love for stocks, let's look at some of the bigger picture stories on the front page of the papers. they make me less concerned about the elevated levels. big-picture stories that didn't refer to the stock market, but they might as well have. the first, i thought this was so huge for the stock, huge. incredibly important piece for the stock market. gop's cantor looking past politics of debt. front page "new york times."
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here's a piece where prominent republican leader you've seen him many times on cnbc has heard the cat calls, chiefly from the big business ceos who supported him all these years. the cat calls, it's time to move on, pal. be less obstructionist, be more reasonable, less about arguing, more about building. i regarded this piece as the single most important story about the stock market in any of the papers today. this is the kind of story i've been waiting for. where the republicans finally feel the heat from big business and they stop hurting our stock market. it's a new development and it comes on the heels of romney losing the election. cantor is very close to business. he speaks to a lot of the execs, he does like job creation. he doesn't want his legacy to be that he obstructed business progress. yet that had become his motus operandi. take washington off the business pages for a while and let the
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market run. stop worrying about sequestrati sequestration, start worrying about which companies will do better. we'd be doing the public a good service if we pay attention to the fact that cantor and the republicans might be out of the way as therefore would be the democrats. then there are the lead stories in both the "new york times" and the "wall street journal" today. these are incredibly meaningful. it's about how we could be on the verge of immigration reform, immigration reform and immigration reform. i know we all know that the top in housing was caused in part by a crackdown in immigration, that required documentation for new home buyers. when you lost that stream of hard-working home buyers without papers, you lost a huge number of customers, the big prop on the housing market. there's been a lot of talk about what can continue to power home building in this country, including many stories of saying it's about throwing -- for 11 million illegal immigrants, precisely the group taken out of the housing market, that would do it. that would make you feel there's
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going to be a long-term move in housing. finally, press tends to be so negative, it drives me crazy. here's a positive turn into a negative. i'll turn it back into a positive. the headline, from the financial times. shale boom now visible from space. yes, it is true, i've said this story, this is news? i've been saying it over and over again. we are burning more natural gas than ever as we work quickly to become energy self-sufficient north america. but let's face it, one of the most bullish tenants of the turn in the united states is cheap energy in the form of big oil finds. and about the lowest natural gas prices in the world. i can say, sure, flaring's a nightmare, or i could say could you imagine the number of jobs this will create down the road? remember, every day around here we get companies making moves to bring out value. how many times have we urged
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hess to break itself up and focus on the incredible oil and gas properties? today they did just that. caused the stock to roar $3.50, 6% on the news. this stock is not done going up. no, not at all. we understand some of this move might be motivated by a hedge fund. they would want some board seats, i say who cares. i just like the newfound value which, again, is not done being brought out. we've got the same thing going on over at transocean, symbol r.i.g. where carl icahn, yes, the one who accused our own scott wapner of bullying, he's brought up a 5.6% stay, he's agitating for a $4 dividend. it's not done. finally there's caterpillar, today's high-profile earnings name. i want to play it right up front here. when i saw c.a.t.'s numbers, i blanched, they were weaker than i looked for and the outlook wasn't as bullish as i hoped. nobody cared. they're cutting inventories, things will get better later in
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the year, stock leaped a couple of bucks. when you get a situation where a company reports a not great number and doesn't get hammered and instead goes higher, you can say, oh, that's ridiculous. however, consider when honeywell reported on friday, the u.s. is starting to grow in low single digits. europe's stabilizing. and china ease growing at 10%. how can we not simply dismiss c.a.t.'s guidance as conservative and buy the stock? and that's what people do. here's the bottom line, you can read through the positive headlines about retail investors coming back, you can play the knee-jerk contrarian game. oh, so they're back, it must be bad. or you can look at the bigger picture. an evolution of an important republican to stop the economic uncertainty. the possibility of immigration reform. producing millions of more home buyers. and our country's remarkable oil and gas reserves so abundant that we burn off a huge amount of them and conclude that maybe
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just maybe we should be taking out the old highs because the news is worthy of a gigantic advance. one that's only just beginning. how about eric in virginia. eric? >> caller: hey, big deepwater boo-yah to ya. >> you wouldn't be eric cantor, would you? >> caller: no, unfortunately. i like to be invested alongside carl icahn and i wanted to get your take on transocean especially after the announcement on friday that it's pushing for a $4 dividend. >> it's a very inexpensive company. got very caught up. they had to do a huge refinancing, much, much lower. but it is catching up to the rest of the oil service group. you can go higher with or without carl icahn. dan in florida, please, dan? >> caller: hello. >> go ahead, dan. you're up. >> caller: dr. jim, dan, how are ya? >> i'm fine. >> caller: hey, i have a
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question. i'm concerned about this ppg takeover or split, whatever's going on. >> no, that's -- that's just arbitrage pressure. the arbs had to buy a certain amount of georgia gulf. this is just another opportunity to buy ppg on the cheap and i think you should take advantage of it. it might be tempting to stop worrying about all the things that could go wrong for a moment. you'll miss what's going right. don't just read the stories and decide retail's back therefore it's got to go down, think bigger, think immigration, think shale boom, think cantor, think congress no longer something we talk about on cnbc. "mad money" will be right back. coming up -- clinical cash. the prognosis has been positive for medical technology company optco health up 30% over this year. is this the perfect drug for a profitable 2013? or should these shares be quarantined? discover the answer in cramer's exclusive with the ceo just ahead.
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and later, valuable lesson. saw the share of highs and lows. but if you can crack the code of what makes a winner, results could be profitable. tonight, cramer takes a look at top ipos of 2012 to get you one step ahead in the year ahead. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter, have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
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here on "mad money," i'm always telling you to speculate because it's the best way to keep yourself interested in the stock market even in uninteresting times. this one's a whole lot more relevant in the fabulous bull market we find ourselves in right now. yes, it is. when you pick the right single
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digit specks, they can make you a whole lot of money in a very little time. case in point, optco health, opk, you twitter me constantly about. it's a small diagnostic company that develops rapid tests for prostate cancer, alzheimer's. they also have late-stage clinical trials. the last phase before you can take your drug to the fda for approval. back on november 7th, we interviewed the ceo, a man with incredible track record creating value in small drug companies. over the last 30 years, this guy has founded and sold not one, but two pharma companies, first key pharma which was bought back in 1986 and ivax, both spectacular gains, including a 6,000% win for anyone who get on the ipo. he owns 44% of opko. at the time, trading $4.26, now it's at $6.60 giving you a 55% gain in less than three months. that's the kind of move is why
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we speculate, a lot has happened since then. opko has partnered up to develop a drug that helps suppress nausea in chemotherapy patients. and they developed their alzheimer's diagnostic technology. let's check in with dr. phillip frost, the bankable chairman and ceo of opko health. dr. frost, welcome back to "mad money." >> thank you, jim. >> okay. the acquisition sounds really big, you're paying 20 million shares of opko, this is going to give you what within the next year that we can see coming to market? >> i don't think we'll see anything come to the market within the next year from that acquisition, but their lead product, a new form of vitamin "d" will be useful in treating a population of 4 million patients who suffer from chronic renal disease. this is a major problem. they need to be treated. with what? believe it or not, vitamin "d."
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and there are two prescription products on the market now, each one sells for approximately $3,000 a year. but both are inadequate. so what we're dealing with is a $12 billion market in the u.s. alone with no perfect drug to treat it. we think that the vitamin "d" formulation fills the bill. and then the second biggest market for this product vitamin "d," is in japan. almost as big. so we're sitting here with a wonderful opportunity, and we hope to exploit it. >> first of all, i have to tell you, and i've known your work for years, when i saw this, i said how the heck did you find this and pfizer didn't? how did you find this and lilly didn't? i said, wow, this isn't natural, this is a $1 billion formulation. >> well, it's very simple. you know that we have a diagnostic card we're developing for vitamin d, it's a $3 billion
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plus market in the united states. we had to become expert at vitamin "d." and we learned about this company in canada, which was not for sale, but we contacted them and before long we were able to strike a deal and now that's part of opko. >> do you think they will sell some of that 20 million shares so our viewers will be able to get in? or should our viewers do what you're doing, buying hundreds of thousands shares in the open market seemingly for the last few months every time i look? >> you know, i can't speak for them. i hope that they will be with us a very long time as loyal shareholders. >> fair enough. how about these partnerships you're arranging? what are they doing for you? >> well, they have a product also in phase three clinical trials for nausea vomiting associated with chemotherapy. and that trial will be finished in the first and the third quarter of this year and hope submit to approval shortly afterwards. and that could be on the market within a year after that.
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and that could be the best product in its field to treat nausea and vomiting. again, that could be a $1 billion product, and we'll enjoy milestones and very substantial royalties on that product. so far as j & j is concerned, i'd say that's more of an r & d product. the potential rewards further out in the future are also significant. >> we talked about the psa test last time. are we further along? what are the new milestones we've hit there since november? >> we're further along, but we want to get it perfect because it's so big. so we're going to do another trial. and i would predict trying to be a little bit more conservative that it'll come to market at the end of this year. we also have the 4k score which you remember is more accurate than the psa. and that we're going to be marketing within the next two to three months in the united states. >> okay. how about the diagnostic, how did the big guys miss that game-changer?
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>> i'm sorry? >> how did the big guys miss that game-changer? remember, i'm trying to figure out how you spot things they don't spot. this has been -- i always feel i wish people knew your background. because your background has been to find formulations and compounds right there for everybody to see and only you saw them. and i don't know how it works -- i don't know how you can do it. >> well, very simple. in the case of claros, we were very interested in having a platform for reforming diagnostic tests since we had a platform for discovering new tests and i happened to read in one of the journals about a small company in boston that had won several prizes for their innovations and i made a phone call, met the people, and were able to come to terms. >> what's the next thing we're looking for? i know the stock has run up a lot since i've seen you last, but maybe there are people should be aware of, the next data point that we should be focused on so you can come back on and talk about your great company. >> well, i think the next thing
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we need to focus on is the introduction of the 4k score for the prostate. and that, as i said, we're looking forward to in the near future. >> well, that is excellent. dr. phillip frost, you have delivered as you always have in the 25 years i've followed your career. thank you so much for coming on "mad money." >> thanks, jim. >> that's dr. phillip frost. look, if you don't -- just do some of the work on this. you won't believe what this company's doing. and look at the insider buying. here's a man who puts his money where his mouth is. "mad money's" back after the break. coming up, valuable lesson? last year's stock offerings saw its shares of highs and lows. but if you can crack the code of what makes a winner, results could be profitable. tonight, cramer takes a look at top ipos of 2012 to get you one step ahead in the year ahead.
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so far 2013 has turned out to be a real good year for ipos. we've seen seven deals since the new year began. and at this point, all of them have made you money. four of them, bright horizons, lipo science, and norwegian cruise lines were up double digit percentages. anywhere from 11.6% gain, the data center real estate investment trust to a 30.5% gain in norwegian cruise line. then we've at three master limited partnership ipos not so
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hot in the first day of trading but have since bounced back. and now all of them are above where the deal is initially priced. this is amazing. that's a darn good track record. especially when you consider five more ipos right in front of us. including the spinoff of pfizer's animal health which i told you to get a piece of last week. right now a red hot ipo market. but many of the deals would've flopped last october. the sentiment has changed dramatically. now i've got a whole lot more ipos coming this year, and they can't all be winners. that'd be too good to be true. 2013 might turn out to be a fabulous year of deals, maybe better than 2012. but there are still going to be some flops. i want to look back at last year's best and worst ipos, help you try to figure out what works and what doesn't in initial public offering. granted, the environment's gotten better. but there are many things we can learn from what happened in 2012. first of all, as difficult as last year may have seemed at times, the overall ipo market
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was pretty darn robust. in terms of price appreciation, the public company was up 20.5% versus 13.4% gain, the s&p 500. in 2012, ipos gave you an average first-day spike, that's not too shabby. however, while the general direction was up, it was a major divergence within 2012's cohort. a lot of winners and quite a few losers too. what separated the winners from losers? what made the difference between an ipo that popped huge on the first day of trading and kept running and one that did a big fat belly flop? simple, one word, growth. last year the ipos with real sustainable unquestionable growth were the best performers. and this is a dynamic that only continued in 2013 where the market's appetite for growth cannot be sated. consider 2012's best-performing ipos. top eight performers each gave you at least about a double. it's an important list, people. at the top of it is v.i.p. shop
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holdings. this is a chinese social media ipo. it's the leader -- leading player in chinese flash sales market. you know i'm reflexively wary of china ipos. there's no denying the fast-growing v.i.p. shop which came public in march, gave a spectacular 174% gain for 2012, this is a fast-growing company in a red-hot growth sector. next on the list is prlb. a company with a game-changing disruptive business model that manufactures custom parts. allowing them to take share for the traditional rapid indetection molding business. it became public last february and kept going up. a total return of 146% for 2012. another steaming hot growth ipo. and this is an odd one. did you ever hear this one? home street hmst. it's a full-service community
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bank that operates in the pacific northwest and a highly profitable mortgage business. until you remember the housing resurgence and the rise of the regional banks. two of my top ten themes of 2013. the performance was forecasting those themes. now, this stock didn't have a super fabulous first day. the ipo priced at $44 and traded at $48, up just 9%, which is not so much compared to other names. home street was so strong in the aftermarket, gave you a 132% return for the year after not one, but two stocks, it was a bank. an example of how slow and steady can win the race when it's backed by powerful themes. last year's fourth best performing ipo, this is one you're probably familiar with, called guide wire gwre, provides software systems to the casualty insurance business. their software addresses over 90% of what a typical casualty insurance firm does. everything from policies to claims, to billings. taking share like crazy. no wonder this company became public last january.
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it spiked more than 31% the first day of trading and then went on to rally harder in the aftermarket. total gain of 129% for the year. a niche software company with a rapid growth, defensible barrier to entry and highly visible earnings streams. that can thrive in almost any market. next up, intercept pharma. icpt, this is an orphan drug developer. you know how much we like the orphan biz. develops treatments for chronic liver diseases, the lead drug had very strong data and a large market opportunity. but, again, this is an example of a company with growth that's protected and predictable. at least as predictable as a business that's hostage to the fda can be. when it became public in october and is now giving you a total of 128% for 2012. i find these returns staggering. staggering because you think that no one's making any money in the market and then you hear about this.
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here's one, same symbol as the old national semiconductor, nation star mortgage holdings. largest specialty mortgage servicer in the country also mortgage originator. this housing rebound play was another slow and steady name. it popped just 1.4% on the trading when it opened last march. can you imagine that only up 1.4%. then it went on to roar in the aftermarket. rally that continues to this day. this one opens up a percent and up 121% in 2012. that's impressive for an ipo that initially looked like a loser. but, again, a powerful growth theme behind it. then there's eloq, another software as a service company like guidewire that's a leader in the revenue performance management space. provides companies with a platform that helps them figure out the value of their market initiatives. you know that old saw about the executive who knows he could cut after of his advertising budget, he just doesn't know which half. they help solving that problem,
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so the companies can track how users interact with websites, social media and other communications. eloqua is growing rapidly. hence why the stock popped 12% on the first day and gone on to give you 105% win for 2012. i know, i'm jealous too. don't have any of these for my charitable trust. finally wage works, wage, a human resources technology play that's an on-demand provider of employee spending accounts benefits programs. just like they can outsource your payroll, companies can outsource the management of their flex spending accounts to wageworks. a terrific model, tremendous growth prospects, 90% revenue visibility going into the year. that's why wageworks spiked 40% and kept rallying, 98% gain last year. here's the bottom line, if you look at 2012's eight best-performing ipos. the eight names each gave you a double or better, the lesson here is the market thirsts for
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growth. ipos were immediately rewarded. and mortgage plays like home street and nation star show you the market ultimately rewards the big-picture growth themes that i talk about all the time on "mad money." let's go to joey in florida, please. joey? >> caller: boo-yah, jim. >> boo-yah, joey. what's up? >> caller: hey, i'm looking to sell my position in energy transfer partners and put the funds into another high-yield mlp. what are your thoughts on the recent ipo? >> i think it's fine. i actually am much more of a believer in going with tried and true. i suggest that l.i.n.e. is a little better, kinder morgan partners, and i did blow out of energy transfer because it was just frankly very disappointing. when i say i blow out of, i don't have any stocks myself. my charitable trust left etp. rob in florida, please, rob? >> caller: hey, jimmy boy,
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boo-yah. if it weren't for you, i probably wouldn't be able to deep sea fish as often i get to. you remember kayak as an ipo, i bought it, i still have it. priceline.com's about to take over. should i ring the register? >> i think you sell half. because no one ever got hurt taking a profit and you'd be able to play with the house's money because i remember where kayak, where it was before priceline and then you let the rest run. that's my philosophy, that was my philosophy at apple. i took a lot of heat by taking the money out that was the house's money, but that's the best way to play, even the best growth stocks don't grow to the sky. alan in illinois, alan? >> caller: i bought 100 shares of abbott labs. >> right. >> caller: you said it was a good time to buy? >> yeah, no, i think it's fine. look, i've got to tell you, my charitable trust kept the other part abbott because it's faster growing and i've got a thirst for growth.
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and abv does not, but i think it's fine. yes, we are in a market that just loves growth wherever it can find it. and turns out the common theme among the best performing ipos in 2012 was the growth themes that we have identified in "mad money." and believe it or not, 2013, going to be more of the same. don't move, "lightning round" is next. living with moderate to severe rheumatoid arthritis
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means living with pain. it could also mean living with joint damage. humira, adalimumab, can help treat more than just the pain. for many adults, humira is clinically proven to help relieve pain and stop further joint damage. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. ask your rheumatologist about humira, to help relieve your pain
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and stop further joint damage.
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it is time, it is time for the "lightning round" on cramer's "mad money." rapid-fire calls, you say the name of the stock. my staff prepares the graphics on the fly. play until this sound and the "lightning round" is over. are you ready? it's time for the "lightning round" on cramer's "mad money." we'll start with emil in florida. >> caller: boo-yah to ya, jim. >> i'm getting ready for the phillies. what's up? >> caller: they're going to be down there quick. >> yep. >> caller: last fall on the show, you profiled, you were bullish on the stock. since that time, it seems to have underperformed the market. i'm just wondering if there are other places -- if one should
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exit the position. >> i'm a believer. i'm a believer. but, remember, it is nat gas. big nat gas component. if you were up north, you'd know it, way too warm for nat gas. i would not abandon the stock down here, though. jeff in north carolina. jeff? >> caller: hey, jim, how are you doing? big b-b-boo-yah. >> sweet, love a stuttering boo-yah. what's going on? >> caller: i'd love to hear about nokia if i could. >> i think nokia's fine. i think they're doing everything they can. they cut the dividend, shown great fiscal prudence, sold their headquarters, raise the money. i think they're not going away. i think the stock could go to five and change without a problem. let's go to jim in florida. jim? >> caller: good evening, jim cramer, this is jim ca raton, florida. my question is about standard pacific. >> this is a controversial recommendation i made a few years ago. the stock has ultimately gone up a great deal. they have a big home-building business, including the inland empire in california.
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listen to dan fulton on the show on friday knows that this area is very, very hot. i think standard pacific hit a high today and came back, probably chase down to seven and then you buy it. blake in michigan, blake. >> caller: jim, it's blake in ann arbor, how are you doing? >> what's going on? >> caller: that's what i'm talking about. i'm looking to get into a little bit of housing industry. not sure how much i like the reits. i was looking at first financial. >> it's good. you might want to look at realogy, nation star, but that one's fine too. it is up a lot from last year. let's go to peter in florida. peter? >> caller: how are you? we're about the same age and we grew up in the age of aquarius, and i'm calling about a stock that's pretty strong with a balance sheet and its peg ratios and the estimates, it's been
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price targeted by jeffries and morgan. >> cerner's gotten too rich for my taste. it's too expensive. i think there's a lot of people shooting to get some. i'm going to say don't buy. >> don't buy, don't buy! >> i need to go to antonio in new york. >> caller: mr. cramer, love your show. all the education, especially helping the portfolio because it helped the marriage. >> thank you. >> caller: i've been loving the regional bank stocks over a year doing great with the exception of fnfg. >> they bought more than they can chew. they ended up growing too fast and did it at the wrong time and i'm glad to say don't buy. >> don't buy, don't buy. >> i do not need to be in that and that's a shame because they did a lot of smart this things, but they expanded too quickly in the downturn. now i want to go to oliver in texas. >> caller: hi, boo-yah and howdy
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from houston. >> i'm loving houston. >> caller: cets. >> we like that. that's a pet pharmacy. and i saw some guy downgrade petsmart today, down six. i question that downgrade, i want to buy both pet plays. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. coming up -- with more than 30 years of experience, you've got the market's brightest mind at your disposal. what are you waiting for? e-mail or tweet your most pressing questions @jimcramer #madtweets. and see if they get answered on the air. cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him,
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and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade.
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before we get to your tweets, we've got housekeeping to take care of. back on january 18th, john in virginia talked about mmr. it seemed interesting, it's a real estate investment trust that owns industrial properties. high-quality tenants including
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anheuser-bus anheuser-busch, fedex, kellogg's, sherwin williams. it's a fairly good list of stable clients. here's something we didn't like. over 40% of monmouth's square footage goes to fedex and subsidiaries. but you know what? that's a major league high concentration for one customer. monmouth has a juicy 4.5% yield. i don't want to own any investment trust so dependent on a single client. if you want a similar yield, go for hta, sports 5.5% yield and much more defensive business model. next up, last wednesday, larry from oregon raised a lot of interesting points regarding federal mogul, fdml for your home gamers. i said i just remembered it being a troubled auto part company. federal mogul corporation is a maker of power train and safety technologies, brake friction, chassis, wipers, and other
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vehicle components. supplies everybody from automakers to rail vehicles as well as the aerospace market. right now the stock has nearly nine points off the high from last march, fallen 49% in the last nine months, but on the plus side, federal mogul has the always entertaining carl icahn as the nonexecutive chairman and stock trades at ten times forward earnings. all things that larry pointed out when he called. that said, federal mogul popped 15% just last thursday on excitement that the cold weather will lead to better brake sales, brake pad sales. what do we do with this stock? u.s. auto industry is on fire, but federal mogul gets 43% from the u.s. versus 45% from troubled europe. let this one cool off from last week's big rally. while icahn may get this company to sell itself down the road. i think we need to put on the brakes and curb our enthusiasm, at least for now, but this one is very, very interesting. remember, we hear from ford and gm this week. let's pay close attention to what they have to say. now let's go to some tweets. okay. first, this one is from ryan
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rainier @rainingbirdies. the tweet says believe devon and chesapeake are undervalued. i don't care for either. i don't like the natural gas stocks right now. they are in a world of hurt because we are flaring more natural gas than we need. i think this group which i keep thinking is going to eventually have a move gets defeated by warmer weather. why do you need either one of these? devon is not -- it's a very underperforming stock and chesapeake's trying to do so many things right but at the same time is still trapped in a largely nat gas model. they need to be more oily as it's said. here's a tweet from @brianmpc. he says my 8-year-old just got all the spelling words right and said boo-yah. i love your show and apparently he does too. i am always surprised. i see a lot of people -- i was a bar this weekend, where there
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were a lot of people in their 20s and got started watching the show in their teens and it was quite thrilling because all i heard was boo-yah from 20-something-year-olds. and i think it's -- it's -- we're hitting it. we're hitting it and that's what matters. this next tweet comes from john who writes, jim, i own ebay, what's the chance they ever pay dividend? okay. really, really important point. when you have a company that has as much opportunity for growth that ebay has, you actually don't want them to pay a dividend. you want them to keep investing in their business, a la amazon. as long as ebay is continuing to prosper and the more money they put into their paypal division, the more they make, forget the dividend, focus on the growth. here's another tweet fro from @csivens. he asks, what do you think of sirius xm potential? i think this company has tremendous growth. do you know the single biggest driver of this company is new autos and our auto fleet is 11 years old?
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i think this -- i think that sirius is going to have a very bright year, i think it can go up on a percentage basis substantially. here's another tweet from @sween59. the tweet says do i want to take a flier on deckers? looks like chart wants to turn. i don't care about the chart. here's what i know. i think this core franchise can bounce back. it's true that uggs is a shot brand right now. not doing that well. i think it'll be reinvigorated and just because vf corp. is buying another company, don't think they couldn't take a solid look at them. i wouldn't give up on deckers. "mad money" back after the break.
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huding up cramerica. >> "mad money" kicks off weeknights. all stations come over to mission a for a final go. no go call. this is for real this time. we are on step seven point two one two. we have entered our two minute hold. cabin venting has been inhibited. copy that. sys two, verify and lock.
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command is locked. flight computer state has entered auto idyll. three, two, one. the falcon 9 has launched. preparing for nose cone separation. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemennswers.
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everywhere i went this weekend, people were buzzing about the television event. people up on the streets at dinner, wanting to know who i thought won. to me, there were no winners, neither icahn nor ackman will be
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voted off the island. all they did was rehash the past. icahn punctuating cry baby and loser slurs, ackman talking about a court win and going back on his word. in fact, it only got really ugly when scott wapner who had tremendous poise as a sardonic mediator asked icahn to retreat to the matter at hand and icahn demured saying it was never his intention to talk about herbal life. i actually truly love, a real take away here. the idea that ackman could come on air, disclose his short position and try to convince others to sell. i think we've come a long way from the days where managers only speak of their long positions, which was the case as recently about a decade ago. it all wrangled me that money managers could sell stock. but it perceived as unseemly to do the opposite. a short seller has done great homework as ackman has, coming on the air with his thesis,
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convincing others the stock deserves to go lower, to me affords an honest symmetry with those who come on the air praising stock and sending the thing higher. icahn didn't want to defend herbal life other than to suggest he could lose his battle if the stock goes higher and the mother of all short squeezes. which brings us to the most important question, the one that makes herbal life uninvestable for you. what will it take for either man to be right? what will it tack for herbal life to go to zero or theoretical point of infinity. ackman has not succeeded in keeping it down. without an indictment for fraud, herballife will not go to ackman, just today, though, they announced they're shutting down a multi-level marketing company of which they called a global pyramid scheme, not unlike what
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ackman calls herbalife. and that newsed caused them to get slammed falling 8.91% today. if he wants to win for real, he needs herbalife to be knocked down for real. however, as we've seen, the longs will need much more if they want to a short squeeze. it's odd we haven't seen one yet already. herbalife has started an aggressive buyback in the purchase roughly 9 million of the company's 113 million shares outstanding. you'd think if icahn wanted to make something happen, he'd go in and do what he did with transocean, buy 5% of the company. herb greenberg who has produced an online explanation, but my question is whether that matters. think about the chart followers. we don't hold them to be foolish buyers even as they often revel in their lack of knowledge of the fundamentals. unless the short squeeze develops, herbalife stock is
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going nowhere and the only winner is you because you're getting the full public airing of a stock that would have been unimaginable. just a decade ago. stay with cramer. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company." living with moderate to semeans living with pain.is it could also mean living with joint damage.
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